International action likely on wool

Press, Volume CXI, Issue 32776, 29 November 1971, Page 5

International action likely on wool

If the sense of urgency that had characterised last week’s meeting of the board of the International Wool Secretariat in Melbourne was translated into action, and he believed it would be, then there was going to be international co-operation in wool marketing and it would be closely tied to promotion, the chairman of the Wool Board (Sir John Acland) said when he opened the new pilot plant at the Wool Research Organisation at Lincoln. The role of the secretariat would change to some degree and so might the means of financing it. “Both Australia and South Africa appear to me to be

moving towards acquisition schemes and because their wools are similar they see every advantage in close cooperation. They are concerned that because we have gone faster in settling our own plans, New Zealand might be moving out of the LW.S. orbit. I assured them that this is not so,” said Sir John. “I am sure we want to remain masters in marketing our fibre, but we have seen for years the advantages of joint promotion and in the same way, complete understanding between us must be to our advantage in marketing.

“There will be a great deal of consultation in the next two or three months. I assure you that nothing will delay the work of the establishment company (the company which has to pave the way for the setting up of

the proposed wool marketing corporation). It is the intention of both the Government and the Wool Board that the corporation should be operating by the start of the next selling season,” he said. Sir John Acland also referred to the problems facing New Zealand in meeting its commitments to the LW.S. “Juggling” “For the past four years the Wool Board has been juggling finances to meet its commitment to the I.W.S.

“One year we were not able to do so but the partnership proved a true one and the promotion of crossbred products did not suffer. “We have drawn on our funds, we have raised a loan, we have negotiated grants and finally we have a 50-50 arrangement with the Government.

“The one thing we have not done is raise the levy paid by growers. On present prices they pay a fraction under 3 per cent of their

gross wool returns for promotion and research. This is a little less than the South African farmer and considerably more than the Australian.

“I do not believe it is in the realm of possibility for us to raise this levy when the sheepfarming industry is in desperate need of financial aid. Our other partners may be able to get more from their Governments. We will be talking with our Government, but some months ago they agreed to raise their contribution from sl.sm to more than s4m.

“The only other immediately available alternative is the Wool Commission’s funds, but my board is determined that the new marketing corporation shall have strong grower backing and that it shall not start life handicapped by a lack of funds,” he said. Sir John Acland said he did not see a threat to the I.W.S.